Professional Finance Commission soon
KARACHI: Sindh Governor, Dr. Ishrat-ul-Ebad Khan, said the launching of Professional Finance Commission (PFC) is in final phase and it would be announced soon.

The Sindh Governor said this while chairing a high level meeting at the Governor House.
The meeting reviewed financial matters of the city and district governments of Karachi and Hyderabad, Karachi Water and Sewerage Board (KW&SB), and the Water and Sanitation Agency (WASA) Hyderabad.

Dr. Ebad said the functioning of PFC would help to improve financial matters of the local governments as well as other financial affairs of the province and would also generate more resources.

He directed for expediting work to estimate the losses of infrastructure due to flood in Sindh.
He also directed the Sindh Finance Department to guide the local governments with regard to financial matters and provision of funds.

The Sindh Governor directed WASA Hyderabad and KW&SB for taking measures to increase their recoveries.

Sindh Finance Minister, Syed Murad Ali Shah, Administrator Karachi, Muhammad Hussain Syed, Sindh Secretary Finance, Naveed Kamran Baloch, DCO Hyderabad, Ahmed Bakhsh Narejo, DCO Karachi, Roshan Sheikh, MD KW&SB Misbahuddin Fareed, MD HDA Ghulam Muhammad and other notables attended the meeting. (APP)

166$mn

Pakistan inks $166mn LNG deal
ISLAMABAD: The first Liquefied Natural Gas (LNG) terminal project for the import of 400-500 million cubic feet (mmcf) LNG was signed here on Friday in order to overcome energy crisis in the country and to reduce growing dependence on expensive furnace oil.

The agreement was signed between Overseas Private Investment Corporation (OPIC)-an American company and Pakistan Gasport Limited (PGP), which was also witnessed by Federal Minister for Finance Dr Abdul Hafeez Shaikh and Federal Minister for Port and Shipping Babar Ghauri.

The US $ 166 million project's capacity would be 400-500 million mmcfd and the project will start its work by January 2012 and its completion period is one year.

"With the growing demand of energy, the country desperately needs to import electricity and gas in order to provide electricity and other facilities to the people on cheaper rates", Dr.Hafeez Shaikh said while talking to media after the signing ceremony of the agreement.

He said that the private sector can play its role to overcome the energy needs of the country and what the government can do is to facilitate the private sector and to help remove hindrances in their way.

Dr.Shaikh further said after the completion of this project the country would be able to produce 500 mmcfd LNG that will help reduce the cost and shortage of energy.

Babar Ghauri, speaking on the occasion said that presently the country was facing acute energy crisis and it was needed to take some practical steps in this regard.

He said signing of this project was first of the three projects and work on the other two projects would also be started soon in order to eliminate shortage of energy from the country.

During the ceremony it was informed that the country was facing gas shortage of 1000 mmcfd during summer and 1500 mmcfd in the winter.

The current primary energy demand and supply gap is approximately 22 million tones oil equivalent (mtoe), which is expected to increase to 71 mtoe by 2020.

The location of the project of Pakistan Gasport Limited would be at Kaderio Creek, Port Qasim Karachi.

The technology being used for the project is Fuel Storage and Re-gasification Unit (FRSU) connected via a sub-sea pipeline to the onshore metering station.

The main sponsor of the project is Joint Venture Limited (JJVL), which is also a nominee this year for the prestigious Platts Energy Awards.

The natural gas is a much cleaner fossil fuel and its price will also be invariably cheaper vis-à-vis furnace oil.

It will give 50 per cent savings in Operation and Maintenance (O & M) for power plants and eventually lower costs for the end user. (APP)

Obama hits banks, taps anger over Wall St

WASHINGTON: President Barack Obama launched an onslaught against banks and Republicans on Thursday for working to

block financial reform, using a populist tone amid public anger over Wall Street practices.

Obama, a Democrat who is fighting for re-election in 2012 against a backdrop of high unemployment, said his Republican

opponents' primary plan to boost the economy involved rolling back Wall Street regulation his administration fought to pass.

The president also pressed Congress to approve his $447 billion jobs package and said he was "comfortable with" a proposal

by fellow Democrats to pay for the plan with a tax on millionaires. John Boehner, the Republican speaker of the House of

Representatives, accused Obama of political campaigning.

Obama spoke at a White House news conference after thousands of anti-Wall Street demonstrators protested at New York's

financial district and in several U.S. cities this week over economic inequality and financial institutions' power.

"I think people are frustrated and ... the protesters are giving voice to a more broad-based frustration about how our financial

system works," Obama said.

"What we've seen over the last year is not only did the financial sector with the Republican Party and Congress fight us every

inch of the way, but now you've got these same folks suggesting that we should roll back all those reforms and go back to the

way it was before the crisis."

Obama noted the "Dodd-Frank" financial reform bill he championed was designed to prevent Wall Street abuses, and his

emphasis on the subject indicated he would use the theme heavily in the 2012 presidential race.

Banks, he said, "can't be competing on the basis of hidden fees, deceptive practices or, you know, derivative cocktails that

nobody understands and that exposed the entire economy to enormous risks."

Vice President Joe Biden and a U.S. Federal Reserve official also expressed sympathy for the protesters, but some investors

said Obama's populist tone was misplaced.

"If these statements were coming from a lowly congressman, that's one thing, but this is the president. It's class warfare at its

finest, or at its worst," said Marshall Front, chairman of Front Barnett & Associates, which has $600 million in assets and

owns bank stocks.

POPULISM AND POLITICS

Bank of America said last week it planned to charge customers who use debit cards to make purchases a $5 monthly fee.

Obama said recent hikes in fees charged by banks were likely unfair to consumers. He said it was appropriate for the

government to play an oversight role.
The depth of that oversight is as much a political issue as it is a financial one.

"You've got Republican presidential candidates whose main economic policy proposals is, 'We'll get rid of the financial reforms

that are designed to prevent the abuses that got us into this mess in the first place,'" Obama said.

"That does not make sense to the American people. They are frustrated by it, and they will continue to be frustrated by it until

they get a sense that everybody's playing by the same set of rules."

House Speaker Boehner said Obama had "given up on the country" to focus on his re-election rather than working with

Republicans to boost the economy.

"Mr. President, why have you given up on the country and decided to campaign full time instead of doing what the American

people sent us all here to do?" Boehner said.

Though criticizing Wall Street can tap into populist support, it could hurt Obama's campaign pocketbook. Like other

presidential candidates, Obama is courting Wall Street contributions for his political goals.

Obama already has a tenuous relationship with some in the financial community for his harsh rhetoric about corporate

compensation at the beginning of his term.

"It is pretty clear that the Obama 2012 campaign is going to try to take up the theme of economic populism -- how they

(Obama and Biden) are the only ones standing in the way of the banks and corporations taking over Washington," said Paul

Sracic, a political scientist at Youngstown State University in Ohio.

New York City protests over income inequality have spread to other U.S. cities. They were underway or planned on Thursday in

Austin, Texas; Tampa, Florida; Washington, and Houston.

"We have a very frustrated people, and I can understand their frustration," Dallas Fed President Richard Fisher told a group of

business people in Fort Worth, Texas.
"We have a very uneven distribution of income. We have too many people out of work for too long.

JOBS SALES PITCH

During his White House news conference, which lasted more than an hour, Obama continued a sales pitch for his jobs

package, saying it was necessary to avoid another recession.

Republicans say the proposal -- a mix of stimulus spending and tax cuts for workers and small businesses plus an end to

some tax breaks for corporations and the rich -- will never pass as a whole but that certain parts are worth considering.

Some Democratic lawmakers are also not fans of the bill. In response, Senate Majority Leader Harry Reid said he would

substitute a new millionaire's tax for some of the tax hikes Obama had proposed in order to win more support.

Nevertheless, Republicans are still expected to block the measure in the Democratic-controlled Senate and it faces stiff

opposition in the Republican-cont6th Int’l Expo Pakistan from 20throlled House of Representatives.

Adoption of reforms agenda must for economic stability: ADB
ISLAMABAD: Pakistan’s economic outlook is positive, however needs adherence to the national economic reforms agenda to overcome the challenges

it has been facing currently, newly appointed Country Director Asian Development Bank (ADB) said here on Thursday.

In a first-ever informal meeting with journalists after assuming the charge, ADB Country Director, Werner Liepach said that Pakistan was facing

challenges of energy shortage, water management, access to finance, supply chain and transport facilities.

ADB country head said the economy of Pakistan was interlinked with global economies so if economies at global level perform well, it would have

positive effects here also.

He said that it does not matter whether Pakistan goes to International Monetary Fund or not, but it will have to adopt a national economic reforms agenda

for better future of economy.

He said the country’s agriculture sector has a lot of potential to flourish due to good climate conditions and sufficient labor force.

“However, it requires proper supply chain and transport facilities to develop further,” Liepach remarked.

He said that ADB in collaboration with Government of Pakistan is working to improve water management for agri-sector development as well as to

avoid floods in the country.

India, Pakistan look to trade to reinforce peace
NEW DELHI: Indian and Pakistani business leaders said Thursday there were big opportunities to boost direct trade between them after the rival nations

agreed to work harder at opening up their markets.

While formal trade between the two most populous and largest economies in South Asia is a paltry $2.7 billion annually, unregulated trade, much of it

routed through third countries, is estimated at $10 billion.

This informal commerce shows "the tremendous potential for bilateral trade," said Federation of Indian Chambers of Commerce and Industry secretary

general Rajiv Kumar.

Cross-border commerce currently amounts to less than one percent of each country's global activity, but the two sides harbour hopes of increased

trade in areas such as engineering and textiles.

"There is a large market to be opened up," said Rajan Bharti Mittal, managing director of India's Bharti Enterprises, parent of the country's largest mobile

phone operator.

The comments came as India's commerce minister Anand Sharma announced he would lead a trade delegation to Islamabad next February at the

invitation of his Pakistani counterpart, Makhdoom Amin Fahim.

The two agreed in New Delhi late Wednesday to more than double trade within three years to $6 billion, set up a second trade border check post and

make it easier for Indians and Pakistanis to get business visas.

Both governments "are committed to normalisation of trade relations," said Fahim, whose five-day visit at the head of a large business delegation is the

first by a commerce minister to India in 35 years.

"We're already trading with each other via third nations. This shows there is a need in both countries for each other's products," Bashir Hussain, chief

executive of the Pakistan Horticulture Development and Export Company, said.

19000 Nato containers still unaccounted for: NA body
ISLAMABAD: The National Assembly Standing Committee on Commerce on Thursday noted with concern that during entire period of Afghan Transit

Trade (ATT) 305,000 containers crossed the border out of which 52,000 containers were of US.

The meeting of the Committee was held here today, under the chairmanship of Engineer Khurram Dastgir Khan, MNA/ Chairman of Standing Committee

on Commerce.

The details of 19,000 containers are yet to be ascertained, says a press release issued by the National Assembly Secretariat today.

The Committee discussed the agenda regarding Auditor General ofPakistan's report on Pakistan Re-Insurance Corporation Limited (PRCL), andReport on

missing Afghan transit Trade Commercial during Containers andNATO/ISAF Containers form Karachi Port and inland transit.

Nawab Abdul Ghani Talpur, MNA, Ch. Iftikhar Nazir, MNA, Nauman IslamSheikh, MNA, Mrs. Tahira Aurangzeb, MNA, Haji Muhammad Akram Ansari,

MNA,Hamid Yar Hiraj, MNA, Mrs. Kashmala Tariq, MNA, Iqbal Muhammad Ali Khan, MNA, Mrs. Jamila Gilani, MNA, Ch. Asghar Ali Jatt, MNA, Ms. Qudsia

Arshad, MNA, and Ms. Shahnaz Saleem, MNA attended the meeting.

The Committee expressed displeasure on continuing absence of Minister of Commerce in Meetings of Standing Committee on Commerce.

The Committee noted with concern FBR in their first briefing informed that from January 01, 2007 to October 15, 2010 as many as 7922 containers had

never crossed Pak-Afghan border and were instead pilfered/dropped within Pakistan.

Revenue loss on these 7922 containers was estimated at Rs. 19 billion,Based on benchmark of ten (10) days, the number of missing containers

wasworked out as 15314 containers and revenue loss was estimated at Rs 37billion.

The Committee further noted that later on the chairman FBR constituted a Probe Committee which has now found that 3,689 containers did not cross

over to Afghanistan and were pilfered en-route and consumed inside Pakistan.

Based on various inquiries and confirmations made so far, as may as28900 commercial Afghan transit Trade containers have been identified.

Estimated revenue loss on these containers comes to around Rs. 55billion.

Show Cause Notices to the Importers, Clearing Agents, Border Agents and the National Logistics Cell (NLC) in over 10,000 of these containers have

been issued and the remaining are being issued.

An initial list of about 19,000 containers has been complied and sent to border customs Collectorates of Peshawar and Quetta for further verification

from the record.

As against 25,309 commercial Afghan Transit Trade (ATT) containers imported during the period 01.02.2010 to 20.06.2010, the quantum of such

imports in the corresponding period of this year has fallen to 11,632containers, signifying a massive fall by 54%, the Committee noted with concern,

Similarly, non-commercial (ATT) imports have also fallen by 32% from 2365 containers imported during 01-02-2010 to 20.06.2010 to 1604 containers

imported in the corresponding period of this year.

The most notable aspect is that it has not yet been ascertained about the goods, items and their price in the containers, the Committee noted.

The Committee also noted with concern that during entire period of Afghan Transit Trade (ATT) 30,5000 containers crossed the border out of which

52,000 containers of US crossed the borders.

The details of 19,000 containers is yet to be ascertained.

The Committee apprehended that Americans are involved in missing ofcontainers and smuggling.

The situation will be more worsened after more probe. The whole fraud is in connivance with US.

Due to latest computer technology the exact position can be revealed. The Committee reiterated to find out details regarding transit and missing of US

and NATO containers including nature of order etc.

A separate meeting be held on Pakistan Automatic Clearing System (PACS), Semi automated environment system and automated system Chairman FBR,

NLC and concerned quarters should send the detailed information to the members of the Committee.

The Committee unanimously decided to call Minister of Commerce in the Meeting.

"The Committee dubbed that quantum of smuggling under umbrella of Government is worst in the entire history of Pakistan", the National Assembly

Secretariat press release said.

The Committee noted that charge sheet has been issued to 600 (Bs-16 &below), 60 (BS-17 and above) employees of FBR. Six FIRs have been

registered.

Hamid Farooqi, Principal Appraisal remained on duty for the entire period.

World Stocks: Green shoots seen next year
LONDON: World stock markets will recover next year from a nightmarish 2011 that has wiped trillions of dollars off share prices, according to a Reuters

poll that showed almost all major stock indexes ending 2011 in the red.

Darkening economic prospects and fears the euro zone debt crisis will unravel into financial catastrophe sent global stocks plummeting around 14

percent since the last quarterly poll of equity strategists in June.
Only the Dow Jones Industrial Average and South Korea's KOSPI are expected to finish the year with gains compared with 2010's closing levels,

among the 19 major stock indexes covered by Reuters polls over the last week.

Still, despite the dire performance of stock markets so far this year, most respondents were stuck in their usual habit of predicting big gains, no matter

what real risks face the world economy.

According to the consensus, only one index -- Taiwan's TAIEX -- is expected to finish 2011 at a significantly lower level than its close on Thursday.

The last three months have seen an enormous spike in stock market volatility, to the point that several of the survey's usual sample of around 350

analysts refused to give forecasts this time.

While analysts are waiting for clear signs either way of progress or failure in fixing the euro zone debt crisis, stalling economic growth in major

Western economies will restrain share prices in coming months.

"The global slowdown will still drive economic growth and earnings lower," said Philippe Gijsels, head of research at BNP Paribas Fortis in Brussels.

"Obstacles to a new bull market are still formidable... there is a lot of political uncertainty. This will take time to clear."

World equities have already lost around $3.7 trillion dollars in market capitalization since the start of this year -- more than the nominal gross domestic

product of Germany.

Euro softens in Asia after Germany vote | Business
TOKYO: The euro softened in Asian trade Friday against major rivals after being boosted by Germany's approval of expanding Europe's bailout fund, as

markets stayed cautious over doubts about the fund's power.

The New Zealand dollar fell sharply after Fitch and Standard and Poor's downgraded their debt ratings for the nation, illustrating the challenges also

faced by countries that are seen to have relatively stronger debt profiles.

The euro stood at $1.3572 in Tokyo trade, down from $1.3586, while fetching 103.94 yen against 104.33 yen.

The New Zealand dollar was down at US $0.7659 after the downgrades, from $0.7782 late Thursday.

The US dollar slipped against the yen in Asian trade Friday as investors widely ignored a US government announcement that it would continue stronger

market oversight and expand its intervention war chest in a third extra budget, dealers said.

The dollar traded at 76.60 yen in Tokyo trade, down from 76.79 yen in New York late Thursday.

The euro eased after being boosted by Germany's ratification of proposals to extend the power of the European financial stability facility (EFSF),

soothing concerns over political discord and indicating other nations would follow Berlin's lead.

However, "the bottom line is that there is still a huge degree of scepticism on the ability of policymakers to resolve the crisis in the eurozone periphery

while growth worries have not receded," noted Credit Agricole's Mitul Kotecha. Better-than-expected US data, including an upward revision to second

quarter GDP and lower jobless claims, also improved sentiment.

Japan's Finance Minister Azumi said Friday that Japan plans to boost the size of the nation's war chest to intervene by 15 trillion yen ($195.79 billion) to

"flexibly" respond to the yen's upward trend.

The move would lift the accumulated total amount the government is allowed to borrow from the market to finance intervention to 165 trillion yen.

This means it would be able to raise an additional 46 trillion yen in the future if necessary because it has already used up 119 trillion of the total through

past interventions.

But the government announcement failed to prevent speculative moves in the currency market, as analysts said many investors ignored it.

"We see the announcement to be only verbal and totally unsubstantial," said Nobuyoshi Kuroiwa, senior deputy general manager of the forex team at

Hachijuni Bank.

The strength of the Japanese currency, which in August hit a post-war high of 75.95 yen against the dollar, has hammered outward-facing

manufacturers in a country that is heavily dependent on exports.

Yen eases against dollar in volatile Asian trade
TOKYO: The yen weakened against the dollar in volatile Asian trade Tuesday, supported by speculation Japan may be ready to intervene after the unit neared a postwar high on worries over the US debt crisis.

However, analysts said any action by Tokyo to weaken the yen would have only a short-term effect, with the safe haven currency buoyed by external factors such as concerns that the US faces a downgrade, and European debt woes.

The dollar was at 77.44 yen in Tokyo afternoon trade, up from 77.16 yen in New York late Monday, at one point fetching 77.86.

The euro firmed to $1.4255 from $1.4248, and to 110.42 yen from 109.98 yen.

In early trade the greenback gained against the yen after the US House of Representatives on Monday approved a massive austerity plan to avert a debt default that would have wreaked havoc through the global economy.

After eight months of often angry negotiations, the Republican-led House voted 269-161 on a package backed by President Barack Obama to raise the US debt limit and enact at least $2.1 trillion in spending cuts over a decade.

The Democratic-led Senate was expected to approve the emergency measure in a noon (1600 GMT) vote Tuesday -- scarcely 12 hours before a midnight deadline by which the world's richest nation would run out of cash to pay its bills.

However, many analysts say the deal does not put the US fiscal position on a sustainable path and may not prevent the country from losing its top-notch AAA credit rating.

Speculation that Japan might step into currency markets lingered after the dollar fell briefly to 76.29 in New York on disappointing US manufacturing data, just pips away from its post-WWII low of 76.25 yen on March 17.

A strong yen erodes Japanese exporters' overseas earnings.

The Japanese finance minister said Tuesday his nation's currency was "strongly overvalued" as expectations grew that Tokyo would intervene to sell the yen.

"In principle, it is desirable for fundamentals to be reflected in the market, and in this sense, the yen is strongly overvalued," Yoshihiko Noda told a regular news conference.

Noda declined to comment on the prospect of currency-market intervention, but he said he has been "in touch" with overseas currency authorities.

"It's becoming increasingly difficult for speculators to buy the yen aggressively," Toshihiko Sakai, chief manager of forex and financial products trading at Mitsubishi UFJ Trust and Banking, told.

Sumino Kamei, senior analyst at Bank of Tokyo-Mitsubishi UFJ, said that sharper gains in the dollar versus the yen are unlikely amid concerns over the possibility of a US sovereign downgrade and economic softening.

Data from the US Institute of Supply Management showing virtually no growth in the manufacturing sector offered further confirmation of the nation's stalled economy, bruising market sentiment.

The market is keeping an eye on US employment data due Friday for more indications.

"Any dollar rebound for now should be limited amid these concerns," Kamei said.

The dollar was mostly higher against other Asian currencies.

It firmed to Sg$1.2024 from Sg$1.2006 on Monday, to 1,051.30 South Korean won from 1,049.10, to Tw$28.84 from Tw$28.80, and to 42.07 Philippine pesos from 41.92.

The unit eased to 8,460.00 Indonesian rupiah from 8,475.00, while it was unchanged at 29.72 Thai baht.

Euro sinks on new Greek debt worries

LONDON: The euro fell heavily on Monday, striking a two-month low against the dollar, as Greek debt worries resurfaced with a bang and as data pointed to slowing economic growth across the eurozone.

The European single currency tumbled to $1.3982 in London trading from $1.4155 late in New York on Friday. Monday's level was the lowest since March 18.

Against the Japanese currency, the dollar dropped to 81.52 yen from 81.70 yen on Friday.

"The Eurozone debt and banking crisis continues to deteriorate with recent newsflow highlighting credit rating downgrades and differences of opinion amongst EU policymakers over the contentious issue of Greek debt restructuring," said Neil MacKinnon, an analyst at VTB Capital.

Ahead of the weekend, ratings company Fitch slashed Greece's rating by three notches to B+, citing its growing problems in getting its public finances in order.

European partners are pushing the government in Athens to press the button on 50 billion euros of public asset sales in exchange for lessening the burden on the existing bailout.

Meanwhile rising concerns emerged on Monday over the state of European economic recovery -- with key indicators slowing sharply, and eurozone stragglers behind Germany and France showing signs of stagnation.

London-based research giant Markit's composite eurozone index for manufacturing and services output suggested eurozone growth slowed to a seven-month low in May.

Its index fell from 57.8 in April to 55.4 this month. Any score above 50 indicates growth, and May marked the 22 successive months of economic expansion. But the deceleration in the rate of growth was also the largest since November 2008, Markit said.

"It is not clear the extent to which this reflects temporary factors such as the timing of Easter and disruptions to supply chains emanating from the earthquake in Japan," said Chris Williamson, Markit chief economist, a view backed by external economists.

"But a deterioration in business confidence in the service sector to the weakest since July 2009 suggests that a more fundamental slowing in the pace of economic growth is occurring."

In London on Monday, the euro changed hands at $1.3982 against $1.4155 late in New York on Friday, at 114.06 yen (115.66), #0.8682 (0.8715) and 1.2336 Swiss francs (1.2421).

The dollar stood at 81.52 yen (81.70) and 0.8834 Swiss francs (0.8772).

The pound was at $1.6115 (1.6236).

On the London Bullion Market, gold prices grew to $1,510.43 an ounce from $1,491 late on Friday.

Euro sinks further on Greek sovereign debt woes

TOKYO: The euro fell against other major currencies in Asia on Monday, weighed down by rekindled worries about eurozone sovereign debt after Greece's credit rating was slashed, dealers said.

The euro fell to $1.4083 in Tokyo morning trading from 1.4155 in New York late Friday. The single European currency fetched 115.50 yen, down from 115.66.

The dollar rose to 81.99 yen from 81.70 yen.

The euro "may face continued selling pressure today, following last week's trend, against the backdrop of sovereign risks," Junichi Ishikawa, FX analyst at IG Markets Securities in Japan, told Dow Jones Newswires.

The euro dropped to an all-time low of 1.2348 Swiss francs in early trade before pulling back to 1.2367, against 1.2417 late Friday.

The European currency dived after Fitch Ratings on Friday slashed Greece's credit rating by three notches to B+, citing its growing problems in getting its public finances in order.

There has been much speculation that Greece might have to restructure or reschedule its debt, a move that some fear could plunge the eurozone back into the kind of turmoil it suffered during the financial crisis of 2008.

Fitch said the move reflected the "scale of the challenge facing Greece in implementing a radical fiscal and structural reform programme necessary to secure solvency of the state and the foundations for sustained economic recovery."

However, it expects substantial new money will be provided to Greece by the EU and IMF, and therefore "Greek sovereign bonds will not be subject to a 'soft restructuring' or 're-profiling' that would trigger a 'credit event' and default rating," it said.

Standard & Poor's downgrade on Friday of its outlook for Italy from "stable" to "negative" dealt another blow to the beleaguered euro.

The downgrade came amid concerns that the fragility of the government's centre-right coalition would hamper attempts to slash the country's vast debt.

Safety experts warned ash from an erupting Icelandic volcano that closed the country's airspace may blow across large swathes of western Europe, raising fears of new flight chaos.

But experts said the impact should not be as far-reaching as 2010, when a similar event caused widespread flight cancellations.

China data eases rate fears, world stocks up | Business News watch geo live pakistan tv online
 LONDON: Chinese inflation data helped ease investor concerns on Tuesday that the world's No 2 economy will have to tighten monetary policy more aggressively, but other data releases kept markets in a tight range.

The dollar was slightly weaker against a basket of major currencies (.DXY), while the euro hovered near three-week lows as concern about euro zone debt rose up again.

World stocks as measured by MSCI were up 0.2 percent, not far from last week's 30-month highs. Japan's Nikkei logged a 10-month closing high and Europe's FTSEurofirst 300 was up a quarter of a percent.

A raft of data -- including euro zone fourth-quarter GDP, German business sentiment and UK inflation -- lay ahead during the session.

China's inflation was lower than expected at 4.9 percent in the year to January.

Although price pressures continued to build and will force the central bank to stick to its course of gradual monetary tightening, the report took the edge off concern about firmer action.

"The data probably slightly eased expectations of immediate tightening, although in the overall scheme of things, this doesn't change the fact that China is still in a tightening phase," said Etsuko Yamashita, chief economist at SMBC.

Inflation pressures, particularly in emerging markets, have been part of the motivation this year for investors to move into developed stock markets.

A number of those countries are also having problems, however, particularly Britain. U.S. consumer price data, meanwhile, will be reported on Thursday.

In Europe, the French and German economies expanded by less than expected in the fourth quarter, data showed on Tuesday, suggesting the euro zone may not have accelerated out of a third-quarter slowdown.

EURO PERIPHERY

The euro steadied, supported by Asian demand, but was held back by skepticism that European leaders would come up with a quick and effective solution to tackle the euro zone's debt and banking problems.

It hovered near a three-week low hit a day earlier when reports about ailing lender WestLB triggered another outbreak of worries on euro zone debt and banking problems.

Peripheral euro zone yield spreads have been widening in the past week on uncertainty over a rescue package for the region, and there was some disappointment after a meeting of European finance ministers on Monday.

"Initial optimism at the beginning of the year over a comprehensive bailout package in the euro zone is now starting to fade away," said Lee Hardman, currency strategist at BTM UFJ.

The euro was flat against the dollar at $1.3480, not far from a three-week low of $1.3428 hit on Monday.

The 10-year German bond yield was up 1 basis point at 3.31 percent, while the two-year yield rose to same to 1.41 percent.(Reuters)
Business News watch geo live pakistan tv online

Oil prices climb, Brent close to $104 | Business News Daily News geo News Watch geo
LONDON: World oil prices rose on Tuesday, with Brent crude close to $104 on unrest in the Middle East and robust Chinese demand, analysts said.

Brent North Sea crude for delivery in April gained 74 cents to $103.82 a barrel in early London trade. It hit a two-year high above $104 Monday on growing concerns that Egypt-style unrest occurring in the oil-rich Middle East could disrupt the supply of crude to the West, traders said.

In Tuesday trade, New York's main contract, light sweet crude for March delivery, was up 36 cents at $85.17 a barrel.

A record price gap exists between New York's benchmark West Texas Intermediate crude and Brent due to abundant crude supplies in the United States, where the Cushing depot in Oklahoma is nearly full.

Prices are edging up steadily as demonstrators in various Arab states draw inspiration from pro-democracy protests that led to the ouster of leaders in Tunisia and Egypt.

Unrest has followed in Iran, Yemen and Bahrain.(AFP)
| Business News Daily News geo News Watch geo

Shares mixed, oil up as Egypt tensions rise | Geo News online online tv watch geo live Business news
HONG KONG: Asian shares were mixed on Friday in edgy trade and oil surged amid rising tensions in Egypt after President Hosni Mubarak enraged protesters by saying he would not step down.

Hong Kong was 0.22 percent higher after losing almost two percent on Thursday while Shanghai extended the previous session's gains and rose 0.35 percent. Seoul gained 0.22 percent.

Sydney shed 0.35 percent after seven straight days of gains, while Singapore was 0.35 percent off. Tokyo's Nikkei was closed for a public holiday.

Global markets are keeping an eye on events in Egypt amid concerns the violence could spill over to the rest of the already volatile Middle East.


The crisis in Egypt took a fresh turn on Thursday when Mubarak called a news conference amid speculation he was about to resign, lifting hopes of an to protests that have gripped the country for more than three weeks. However, he said in the televised announcement that he would not leave office until after September elections, instead delegating some powers to his vice president and enraging demonstrators.

More than 200,000 protesters massed in central Tahrir Square, vowing to stage their most spectacular demonstration yet on Friday, sparking fears of violence in Cairo.

Oil prices, which had eased slightly at the start of the week on hopes the protests were subsiding, jumped back on Friday. Brent North Sea crude for delivery in March gained 69 cents to $101.56 on the contract's last trading day.

New York's main contract, light sweet crude for March delivery, soared 83 cents to $87.56 per barrel.

While Egypt is not a major crude producer traders fears a conflict in Egypt could disrupt supplies passing through the Suez Canal, which carries about 2.4 million barrels of oil daily, roughly equal to the output of Iraq or Brazil.(AFP)
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Oil hovers around $102 in Asian trade pk geo news pakistan news business
SINGAPORE: World oil prices remained high in Asian trade Friday, with the market under pressure from the ongoing political crisis in Egypt where anti-government protests have turned violent.

New York's main futures contract, light sweet crude for March, was up five cents to $90.91.

Brent North Sea crude for delivery in March advanced 25 cents to $102.01. In overnight London trade, the contract hit $103.37 at one point, its highest level since September 26, 2008, before settling lower.

The oil market has been on edge since the mass uprising in Egypt began nearly two weeks ago with demands for the ouster of President Hosni Mubarak

While Egypt is not a major crude producer, the country is home to the Suez Canal, which carries about 2.4 million barrels daily, roughly equal to Iraq's output.

Traders are also concerned about the wider ramifications of the events in Egypt on the oil-rich but politically volatile Middle East.

Research house Capital Economics said oil prices were also being buoyed by strong global energy demand.

"The bulk of the rise in oil prices over the last few months reflects buoyant global demand rather than uncertainty in the Middle East," it said in a research note.

"OPEC has plenty of spare capacity. Of course, oil prices would surely rise much further if there were any serious disruption to production elsewhere in the region or to traffic through the Suez Canal," it added.

"But there is still no sign of this and little reason to expect it. In particular, none of the major players in this crisis, and certainly not any new government trying to find its feet, would have any desire to lose the business from the Canal."
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Dollar in tight range ahead of US jobs data   News, geo news watch TV online business
TOKYO: The dollar stayed in a narrow range Friday as cautious investors waited for the release of key US jobs data, while the euro was lower after the European Central Bank dampened rate hike speculation.

Trading was lacklustre with the Lunar New Year holidays keeping many regional players away from the market, dealers said.

The dollar stood at 81.55 yen, little changed from 81.59 yen in New York.

The euro bought $1.3622 and 111.09 yen, off slightly from $1.3630 and 112.23 yen in New York.

The euro had recorded its sharpest decline in 10 weeks on Thursday from 1.38 to around the 1.36 level as the ECB kept interest rates on hold and bank president Jean-Claude Trichet struck a less hawkish tone than previously.
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Stocks surge by 55.6 points at weekend   News, geo news watch TV online business
KARACHI: Led by middle tier shares, Karachi stocks ended up on Friday on hopes of the launch of a margin trading system (MTS), dealers said.

The chairman of the Securities and Exchange Commission of Pakistan (SECP) is expected to visit the Karachi Stock Exchange (KSE) on Monday, which dealers said raised expectations of a possible early launch of the MTS.

"Bullish activity was witnessed ahead of the SECP chairman's consent to visit the KSE on Monday, to review the approval of the MTS," said Ahsan Mehanti, director at Arif Habib Investments Ltd.

The Karachi Stock Exchange's benchmark 100-share index ended 0.45 percent, or 55.36 points, higher at 12,414.41 on turnover of 131.72 million shares.

In the currency market, the rupee ended weaker at 85.53/58 to the dollar, compared with Thursday's close of 85.50/56 amid higher international oil prices.

In the money market, overnight rates rose to end between 11.15 percent and 11.30 percent, compared with Thursday's close of 11 percent after the State Bank of Pakistan mopped up 25 billion rupees ($292 million) worth of treasury bills in a six day repo.

Banks will be closed on Saturday because of Kashmir day.
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Gas outage continues on 4th consecutive day
FAISALABAD: The gas supply remained suspended on fourth and the last day, on Wednesday to all industries of Faisalabad under gas load management plan, Geo News reported.

The suspension of gas has badly affected industrial production resulting increase in miseries of daily wages workers.

Sui gas authorities had announced gas outages to Faisalabad industrial units from Jan 30 to Feb 02.

KESC hikes tariff by 96 paisa per unit
ISLAMABAD: NEPRA has approved to Karachi Electric Supply Corporation (KESC) to hike power tariff by 96 paisa per unit, Geo News reported.

According to the NEPRA official, KESC proposed to raise tariff by Rs 1.01.

He said the hike granted in fuel adjustment charges and will be payable in upcoming electricity bills.

Oil price holds above $100
LONDON: World oil prices drifted lower on Tuesday, but held above $100 on fears that worsening turmoil in Egypt could disrupt supply flows through the strategic Suez Canal, analysts said.

Brent North Sea crude for delivery in March delivery fell 56 cents to $100.46 a barrel, one day after spiking to $101.73 -- which was the highest level since September 29, 2008.

New York's main contract, light sweet crude for March, slid 62 cents at $91.57 a barrel on Tuesday.

Prices broke through the psychological $100 threshold for the first time since the 2008 economic crisis, as mounting protests in Egypt demanded the removal of President Hosni Mubarak.

Egypt is not a major oil producer, but is home to the vitally important Suez Canal, which carries around 2.4 million barrels of oil a day -- roughly equivalent to the daily output of Iraq or Brazil.

"Crude is taking a breather following another spike higher yesterday," Capital Spreads analyst Simon Denham said on Tuesday.

"Traders are pricing in the possibility of escalation of protests across the Middle East, so for as long as the unrest continues crude prices will remain well supported."

He added: "Brent finally broke through $100 and sits happily above there for now. Traders need to be aware though that commodities can pull back just as aggressively as they rise."

Egyptians massed on Tuesday for the biggest day of anger yet in their unrelenting campaign to oust Mubarak, set to be a decisive test of their resolve in an eight-day revolt that has already killed over 100.

Thousands of protesters flooded Cairo's protest epicentre at Tahrir square from early morning with "march of a million" against Mubarak's creaking regime to be staged in the Egyptian capital and Alexandria.

Oil also slid on Tuesday as many traders cashed in their profits, said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.

"One of the factors might be profit-taking since we're at 27-month highs," she said, adding that the dip might be temporary as the Egyptian political crisis drags on.

Egypt has been engulfed in more than a week of street protests demanding and end to Mubarak's 30-year rule.

Investors are concerned that similar demonstrations -- which have also touched Tunisia, Yemen and Jordan -- could spread elsewhere in the oil-rich Middle East.

"After the unrest in Tunisia and Egypt, there is still a high risk of the troubles spreading to neighbouring countries, including major North African oil producers Libya and Algeria," said Commerzbank analyst Carsten Fritsch.

"Although the turmoil has not affected oil shipments so far, the geopolitical 'risk premium' is more likely to increase further."

Barclays Capital analysts added in a report that "the probability for closure of the Suez Canal is extremely unlikely at the moment".